Bank of Maharashtra (NSEI:MAHABANK) has put under the hammer loans extended to Asian Hotels (North) Limited (BSE:500023) which operates the five-star property Hyatt Regency (Delhi). In a rare development, the bank is expecting full recovery of dues from the sale of the loans to a hotel, owned by the Jatia Group. It has set a reserve price of INR 3,300 million against INR 3,240 million dues, the bank said in a note to the asset reconstruction companies last week.

Reeling under Covid 19, in December 2020, the company entered a one-time restructuring (OTR) with lenders, resulting in a moratorium on payments between September 1, 2020 and March 30, 2022, according to the company's FY23 annual report. During the moratorium, some banks declared the account as a non-performing loan which the company challenged in the High Court, the report said. The court stayed the declaration of the account as NPA and directed lenders not to take any recovery action against the company.

This development prompted the Bank of Maharashtra to seek an out-of-court resolution for the company. The bank has invited ARCs to bid on September 26.